Do you need to set a target CPA with Maximize Conversions bidding?

By: Jyll Saskin Gales, Google Ads Coach

Have you ever wondered if setting a target CPA in your Google Ads campaigns is really necessary? You're not alone! Some advertisers find they actually get more conversions when they don't set a target CPA. So, what gives?

Let's ensure we understand how Google Ads bidding strategies work, so we can discuss why a target CPA may or may not the right fit for your campaigns.

We'll cover:

• The difference between Maximize Conversions and Target CPA bidding
• Why you might get more conversions without a target CPA
• When it does make sense to use a target CPA
• How to set a target CPA effectively (if you decide to use it)

Maximize Conversions vs. Target CPA: A Quick Breakdown

Think of Google Ads bidding strategies like different driving modes in a car. You've got your "Maximize Conversions" mode, which is like putting the pedal to the metal and saying, "Just get me there as fast as possible!" This strategy focuses on using your budget to get the most conversions, period.

Then, there's "Target CPA" mode, which is more like setting your cruise control. You tell Google Ads, "I want to get there at this specific speed," where the "speed" is your cost-per-acquisition (CPA). This strategy prioritizes hitting your CPA target, even if it means getting fewer conversions overall.

Why You Might Be Getting More Conversions Without a Target CPA

If you're seeing better results with "Maximize Conversions," it might be because:

• You have low conversion volume: If you're only getting a handful of conversions each month, perhaps because you have a low budget,  "Target CPA" might not have enough data to work its magic.
• Your target CPA is set incorrectly: Setting your target CPA too low is like setting your cruise control at 20 mph on the highway – you'll cause a traffic jam! It's crucial to base your target CPA on your actual 30-day CPA and have at least 30 conversions in the past month to ensure consistency.
• You haven't given it enough time: Sometimes, "Target CPA" needs a bit of a runway to learn and optimize. It's like letting your car warm up on a cold morning. Give it enough time to see if it can hit your target.

When Does it Make Sense to Use a Target CPA?

While "Maximize Conversions" is a great starting point, "Target CPA" can be useful if:

• You have a specific CPA goal: If you absolutely must keep your costs below a certain threshold, "Target CPA" can help you stay on track.
• You have high conversion volume: With enough data, "Target CPA" can be very effective at optimizing your campaigns for efficiency and getting them ready to scale.

Setting Your Target CPA for Success

If you decide to use "Target CPA," follow these tips:

• Base your target CPA on your actual 30-day CP
• Ensure you have at least 30 conversions in the last 30 days.
• Give it time to learn and optimize (at least 15-30 conversions)
• Monitor your campaigns closely and adjust your target CPA as needed

Ultimately, the best bidding strategy for your Google Ads campaigns will depend on your specific goals and circumstances. Don't be afraid to experiment and see what works best for you. And if you're getting great results with "Maximize Conversions," there's no need to fix what isn't broken!